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TOKYO: Ratings agency Standard & Poor's on Wednesday moved Japanese electronics maker  Sharp back out of "selective default", just a day after lowering its assessment of the troubled company.

The temporary move into selective default (SD) came Tuesday after Sharp announced that it was issuing preferred securities to its main lenders, instead of repaying loans that were due.

"We lowered the long- and short-term corporate credit ratings to 'SD' because Sharp carried out a de facto debt-for-equity swap," S&P said in a statement. read more here

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